Lam, Woodside, Bank of Australia, PacifiCorp, Ryder, RPM, Regency, Atmos, Store Capital price

By Cristal Cody

Tupelo, Miss., Feb. 25 – Investment-grade issuers kicked the week off with more than $8 billion of corporate bonds priced over Monday’s session.

Lam Research Corp. sold $2.5 billion of senior notes in three tranches.

Woodside Finance Ltd. priced $1.5 billion of 10-year notes following the company’s two-day roadshow that ended Friday.

Commonwealth Bank of Australia sold $1.25 billion of notes in two parts.

PacifiCorp placed $1 billion of first mortgage bonds in two tranches.

Other issuers during the session included Ryder System, Inc., RPM International Inc., Regency Centers LP, Atmos Energy Corp. and Store Capital Corp.

About $25 billion to $30 billion of investment-grade issuance is expected by market sources this week.

Volume was strong last week with more than $27 billion of supply, compared to the $20 billion to $25 billion of issuance expected.

The surge in issuance by Thursday pushed high-grade volume year to date to surpass last year’s pace for both corporate and sovereign, supranational and agency, sources report. More than $198 billion of high-grade corporate bonds have priced this year, while volume totals about $258 billion including SSA supply, one source said.

By Friday, corporate volume was ahead of last year’s pace by 1%, according to a BofA Merrill Lynch report released on Monday.

“The busy calendar in February reflects in part catching up after a couple of weak months in December and January, and also some front loading of activity that would have come in March (suggesting downside risk to volumes for that month),” the report said. “Despite a busy February new issue performance has been stellar, with almost non-existent concessions and decent tightening on the break among the strongest we have seen on record.”

Meanwhile, several issuers including Medtronic plc have priced reverse Yankee bonds year to date, sources report. Coca-Cola Co. on Monday priced a €3.5 billion four-part offering of euro-denominated notes, a source said.

In January, high-grade issuers priced $11.1 billion of euro-denominated reverse Yankee bonds, while more than $5 billion, excluding Coca-Cola’s deal, have priced in February, according to a BofA Merrill Lynch report.

The Markit CDX North American Investment Grade 31 index closed on Monday about 2 basis points better at a spread of 60 bps.

Lam prices $2.5 billion

Lam Research sold $2.5 billion of senior notes (A3/BBB+/) in three tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.

A $750 million tranche of 3.75% seven-year notes priced at 99.889 to yield 3.768% and a spread of 120 bps over Treasuries.

The company sold $1 billion of 4% 10-year notes at 99.819 to yield 4.022%. The notes priced with a 135 bps over Treasuries spread.

The final $750 million tranche of 4.875% 30-year notes priced at 99.951 to yield 4.878%, or a spread of Treasuries plus 185 bps.

BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Mizuho Securities USA Inc., MUFG and Wells Fargo Securities LLC were the bookrunners.

Lam is a Fremont, Calif.-based semiconductor manufacturing equipment company.

Woodside in primary

Woodside Finance priced $1.5 billion of 4.5% 10-year notes (Baa1/BBB+/) at a spread of 185 bps over Treasuries on Monday, according to a market source.

The notes priced on the tight side of talk in the 190 bps area. Initial price talk was in the Treasuries plus 205 bps area.

BofA Merrill Lynch, Citigroup Global Markets and UBS Securities LLC were the lead managers of the Rule 144A and Regulation S offering.

Woodside Finance is a Perth, Australia-based financing company and subsidiary of Woodside Petroleum Ltd.

Bank of Australia sells notes

Commonwealth Bank of Australia (Aa3/AA-/AA-) priced $1.25 billion of notes in fixed- and floating-rate tranches on Monday, according to a market source.

The bank placed $500 million of five-year floating-rate notes at Libor plus 82 bps.

A $750 million trance of 3.35% five-year fixed-rate notes price with a spread of 88 bps over Treasuries.

Commonwealth Bank of Australia, Goldman Sachs, J.P. Morgan Securities and Morgan Stanley & Co. LLC were the bookrunners.

The bank and financial services company is based in Sydney.

PacifiCorp brings bonds

PacifiCorp (A3/A/A-) sold $1 billion of first mortgage bonds (A1/A+/) in two tranches on Monday, according to an FWP filing with the SEC.

A $400 million tranche of 3.5% 10-year bonds priced at 99.815 to yield 3.522%, or a spread of Treasuries plus 85 bps.

The company sold $600 million of 4.15% bonds due Feb. 15, 2050 with a Treasuries plus 115 bps spread. The bonds priced at 99.535 to yield 4.177%.

J.P. Morgan Securities, MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, KeyBanc Capital Markets Inc. and SMBC Nikko Securities America Inc. were the bookrunners.

The electric utility and subsidiary of Berkshire Hathaway Energy Co. is based in Portland, Ore.

Ryder prices $600 million

Ryder System priced $600 million of 3.65% five-year medium-term notes (Baa1/BBB+/A-) on Monday at 99.906 with a spread of 118 bps over Treasuries, according to a market source and an FWP filing with the SEC.

The notes priced on the tight side of guidance in the 120 bps spread area and better than initial talk in the Treasuries plus 137.5 bps area.

Lloyds Securities, Morgan Stanley, MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities were the bookrunners.

Ryder System is a Miami-based truck rental and fleet management company.

Atmos sells 30-year notes

Atmos Energy sold $450 million of 4.125% 30-year senior notes (A2/A/) on Monday at a spread of Treasuries plus 112.5 bps, according to a market source.

The notes were talked to print with a spread in the 115 bps area, plus or minus 2.5 bps. Initial price talk was in the Treasuries plus 125 bps spread area.

BNP Paribas Securities, CIBC Capital Markets, Credit Agricole CIB and Wells Fargo Securities were the bookrunners.

Atmos Energy is a natural gas distributor and pipeline company based in Dallas.

RPM raises $350 million

RPM International priced $350 million of 4.55% 10-year notes (Baa3/BBB/BBB) on Monday at 99.856 to yield 4.568%, or a spread of 190 bps over Treasuries, according to a market source and an FWP filed with the SEC.

The notes priced on the tight side of guidance in the Treasuries plus 195 bps area. Initial talk was in the Treasuries plus 212.5 bps area.

BofA Merrill Lynch, Santander Investment Securities Inc. and Wells Fargo Securities were the bookrunners.

RPM is a Medina, Ohio-based company that manufactures and markets specialty chemical products for industrial and consumer markets.

Store Capital prices

Store Capital sold $350 million of 4.625% 10-year senior notes (Baa2//BBB) on Monday at a spread of 205 bps over Treasuries, according to a market source.

The notes priced on the tight side of guidance in the Treasuries plus 210 bps area and firmed from initial talk in the 225 bps to 230 bps spread area.

Goldman Sachs, J.P. Morgan Securities, Morgan Stanley and Wells Fargo Securities were the bookrunners.

Store Capital is a real estate investment trust based in Scottsdale, Ariz.

Regency Centers prints

Regency Centers priced $300 million of 4.65% 30-year guaranteed senior notes (Baa1/BBB+/) on Monday at a spread of 165 bps over Treasuries, or 99.661 to yield 4.671%, according to an FWP filing with the SEC.

Wells Fargo Securities, J.P. Morgan Securities, BofA Merrill Lynch, SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments were the bookrunners.

The notes will be guaranteed by general partner Regency Centers Corp., a Jacksonville, Fla., real estate investment trust that owns retail shopping centers.

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